As used in this article, the following terms shall have the meanings indicated:
AVOIDED COSTSThe incremental costs to an electric utility of electric energy or capacity, or both, which, but for the purchase from qualifying facilities, such utility would generate itself or purchase from another source.
CO-GENERATION/NET METERING FACILITYA facility which produces electric energy and steam or other forms of useful energy (such as heat) which are used for industrial, commercial, heating, or cooling purposes.
INTERCONNECTION COSTSThe reasonable costs of connection, switching, metering, transmission, distribution, safety provisions, and administrative costs incurred by the electric utility directly related to the installation and maintenance of the physical facilities necessary to permit interconnected operations with a qualifying facility, to the extent such costs are in excess of the corresponding cost which the electric utility would have incurred if it had not engaged in interconnected operations, but instead generated an equivalent amount of electric energy itself or purchased an equivalent amount of electric energy or capacity from other sources. (Interconnection costs do not include any costs involved in the calculation of avoided costs.)
QUALIFYING CO-GENERATION/NET METERING FACILITYA co-generation/net metering facility that meets the requirements of the Federal Energy Regulatory Commission regarding ownership, fuel use, and fuel operating and efficiency standards.
QUALIFYING SMALL POWER PRODUCTION FACILITYA small power production facility that meets the requirements of the Federal Energy Regulatory Commission regarding ownership fuel use, fuel efficiency, and reliability.
SMALL POWER PRODUCTION FACILITYA facility which produces electric energy solely by the use, as a primary energy source, of biomass, waste, renewable resources, or any combination thereof totaling not greater than 80 megawatts at one site.